Asia Pacific LCCs have further strengthened their market foothold

The post-pandemic environment has proven particularly conducive to low-cost carriers in the Asia Pacific region, as this business model continues to grow more quickly than that of traditional airlines.

LCCs are well suited to this region, which features many markets with rapidly rising demand, driven by a growing middle class. The massive numbers of aircraft orders placed by Asia Pacific LCCs in the region are testament to their confidence in further expansion.

Of course, LCCs have been evolving in recent years, with airlines expanding the traditional LCC model to include bundled fares, widebody aircraft, premium seating, and an increased focus on connecting traffic.

This is blurring the lines between models somewhat, and allows the LCCs to target new market segments.

There is great disparity between different markets within the vast Asia Pacific region. LCC penetration is still highest in Southeast Asia and the Indian subcontinent, and is relatively low in North Asia.

This means there is still significant potential for the average LCC share to expand in Asia Pacific.

The continued growth of LCC widebody operations is noteworthy, with Asia Pacific LCCs leading the way with this approach.

Many of the points discussed here were included in a state-of-the-industry presentation at the CAPA Airline Leader Summit - Asia in Singapore on 30-Oct-2025.